Gnosis Chain community members evaluate gas token choices amid MakerDAO’s pivot to Sky

Gnosis Chain community members are reconsidering its choice of gas tokens following MakerDAO's rebranding to Sky and introducing its new stablecoin, Sky Dollar (USDS). Gnosis operates a sidechain that currently uses a bridged version of DAI, called xDAI, to cover gas fees on the network.

MakerDAO is the issuer of DAI, a stablecoin backed by crypto collateral. As part of MakerDAO’s “endgame” plan, it will allow DAI holders to optionally upgrade their tokens to USDS on a 1:1 ratio while also offering the opportunity for native token rewards. 

The new USDS stablecoin potentially introduces more centralized features, including the ability to “freeze” wallet addresses and restrict access for users in the UK and the US. These changes have raised concerns among Gnosis Chain users about USDS’ reliability in covering transaction costs. MakerDAO has previously clarified that the current version of DAI will continue to exist.

Community members highlighted that USDS’ freeze function contradicts Gnosis’ principles of decentralization. “The USDS has a ‘freeze’ function that blocks the use of the stablecoin in certain wallets and/or smart contracts. This change is against the very essence of Gnosis, which is decentralization and permissionless use,” community member 0xLajota wrote.

In response, Gnosis Chain members discussed exploring several alternative solutions. Suggested options include adopting decentralized stablecoins such as RAI and LUSD or a basket of currencies.

Alternatively, members suggested that Gnosis Chain might use its native staking token, Gnosis (GNO), as the gas token, aligning with other blockchain protocols. The discussion is preliminary, and no official proposal has been made thus far.